The estate agents market has faced a serious challenge in the form of Brexit, which has generated economic uncertainty and conditions unfavourable to long-term investments such as property. The uncertainty has led to reductions in the number of property transactions and property prices, affecting revenue streams for estate agents.

While Brexit is the primary driver of difficulties in the residential segment, commercial property’s role in economic activity has meant a suppressed economic environment has had a stronger indirect impact on the commercial segment. This has been compounded by the shifting nature of the high street as retailers face continued pressure from ecommerce.

A minimally disruptive resolution to Brexit will therefore be crucial to the sector returning to growth. Mintel expects the value of the estate agents market to recover slowly, before gaining momentum once the economy adapts to any changes resulting from the post-Brexit trading regime and business confidence is restored by the end of uncertainty.

Real estate: property consisting of land or buildings.

Estate agent: a person whose job involves selling and renting out buildings and land for clients.

Lettings: the action of renting out a property.

Rental yield: a numerical representation of the rent received compared to the value of a property or mortgage. The higher the rental yield, the less paid to cover interest and other costs involved in owning an investment property, such as commercial rates and insurance.

Commercial real estate: any non-residential property used for commercial purposes, such as stores, malls, office buildings and industrial parks.

Residential real estate: a building that is used as a dwelling, incorporating both houses and flats.